Divgi TorqTransfer Systems Limited is an India-based company engaged in the design, development, and manufacturing of advanced drivetrain components and systems. Originally incorporated as "Divgi Metalwares Private Limited" on December 16, 1964, it transformed into a public limited company in 2022. Divgi TTS is India's largest EV Transmission manufacturer, positioning itself as a key player in the evolving automotive landscape.
The company operates with a clear focus on developing innovative transmission solutions for the modern automotive industry. It develops and provides system-level transfer cases, torque couplers, and dual-clutch automatic transmission (DCT) solutions, catering to both Manual and Automatic Transmission requirements. Divgi TTS specializes in crafting drivetrain systems and related components for a diverse array of vehicles, spanning passenger cars, utility vehicles, commercial vehicles, and agricultural machinery.
Divgi TorqTransfer Systems has established itself as a comprehensive solutions provider in the automotive components sector. It supplies engineered, turnkey solutions and components to automotive original equipment manufacturers (OEMs) in India, the United States, China, Korea, Russia, and other countries. This global reach demonstrates the company's capability to serve diverse markets and adapt to various automotive standards worldwide.
The company designs, manufactures, and supplies a variety of products, such as:
* Torque transfer systems (including four-wheel-drive (4WD) and all-wheel-drive (AWD) products)
* Synchronizer systems for manual transmissions and DCT
* Components for the above-mentioned product categories for torque transfer systems and synchronizer systems in manual transmission, DCT, and electric vehicles (EVs)
Specifically, it manufactures products including torque transfer systems, synchronizer systems, DCT systems, rear-wheel-drive manual transmissions, transmission transfer cases, and synchronizer components for EVs.
The company maintains a robust manufacturing infrastructure to support its operations. It has three manufacturing and assembling facilities in India, with an additional facility currently under construction. This expansion indicates the company's commitment to scaling operations and meeting growing demand in the automotive sector.
Divgi TorqTransfer Systems Ltd has its registered office in Plot No 75 General Block MIDC, Bhosari, Pune, Maharashtra, 411026. The company's strategic location in Pune, a major automotive hub in India, provides it with proximity to key customers and suppliers in the automotive ecosystem.
Innovation remains a cornerstone of Divgi TorqTransfer Systems' strategy. In 2005, the company, along with joint ventures, invested in software development R&D with the assistance of collaborators such as BorgWarner and Hofer. They have conducted four projects of software development—one for global application and three for local customers. As a result, three projects were commercialized, while one was at the development stage.
This consistent focus on technology development positions the company well for future growth in the increasingly sophisticated automotive market.
The company's financial performance reflects the challenges and opportunities in the automotive sector.
* Market Capitalization: ₹1,911 Crore (down -16.7% in 1 year) as of recent data.
* Operating Revenue: ₹236.30 Crore (on a trailing 12-month basis). An annual revenue de-growth of -2% indicates some pressure on top-line growth.
* Pre-tax Margin: 21% (considered great).
* Return on Equity (ROE): 6% (fair but needs improvement).
* The company is debt-free and has a strong balance sheet, enabling it to report stable earnings growth across business cycles.
Recent quarterly performance shows mixed results:
* Q3 FY22024-25 Net Profit: ₹5.24 Crore, a decrease of -44.08% compared to ₹9.37 Crore in Q3 FY2023-24.
* Q3 FY22024-25 Sales: ₹52.51 Crore, a decline of -16.72% compared to ₹63.05 Crore in Q3 FY2023-24.
The company operates under experienced leadership:
* Chairman: Praveen P Kadle
* Company Secretary: Sanika Surendra Nirgude
* Promoters: Jitendra Bhaskar Divgi, Hirendra Bhaskar Divgi, and Divgi Holdings Private Limited.
* Promoter Holding: 60.6% indicates strong promoter confidence in the business. The company's shareholding pattern reflects stability with promoters maintaining significant control while allowing for public participation through its stock market listing.
The shares got listed on BSE and NSE on March 14, 2023, following a successful IPO. In March 2023, the company raised capital from the public by issuing an aggregate of 69,85,090 Equity Shares amounting to ₹412.1 Crore, comprising a Fresh Issue of 30,50,847 Equity Shares amounting to ₹180 Crore and an Offer for Sale of 39,34,243 Equity Shares amounting to ₹232.1 Crore.
* 52-week High: ₹868.70
* 52-week Low: ₹410.10
* P/E (Price-to-Earnings) Ratio: 37.70
Divgi TorqTransfer Systems is well-positioned to benefit from the growing electric vehicle market and the increasing complexity of automotive transmissions. With a strong focus on innovation, it is actively developing next-generation transmission systems and exploring opportunities in the electric vehicle sector, particularly through collaborations and localization efforts in India.
While export revenue is projected to grow significantly, the company faces competitive pressures and operational delays that necessitate a rapid response to evolving market demands. Optimism remains for future growth, bolstered by a solid order book and a proactive approach to expanding its presence in both domestic and international markets.
The company's dividend policy reflects its commitment to shareholder returns. In the quarter ending March 2024, Divgi TorqTransfer Systems Ltd declared a dividend of ₹2.60, translating to a dividend yield of 0.48%. The company has been maintaining a healthy dividend payout of 24.2%.
Divgi TorqTransfer Systems stands as a significant player in India's automotive components industry, with its focus on transmission systems and electric vehicle solutions positioning it for potential growth in the evolving automotive landscape.
